Private Terminal Launches Rail-Based Fuel Supply Route From Djibouti to Ethiopia

A private petroleum terminal at Djibouti's Doraleh port will begin loading fuel onto trains destined for Ethiopia beginning in June 2027, supplementing the current system of approximately 350 daily tanker trucks. The facility, developed by African Terminal & Logistics Services, will feature 288,000 cubic meters of storage capacity with capacity to expand to 750,000 cubic meters. This project aims to ease transportation pressures for landlocked Ethiopia, which relies on Djibouti's port for the majority of its fuel imports.

Ethiopia's landlocked geography creates a critical dependency on foreign ports for fuel access, making efficient logistics essential for the nation's energy security. The current road-based system, which moves approximately 350 trucks daily across the Djibouti-Ethiopia corridor, faces multiple vulnerability points including port congestion, border processing delays, and vehicle shortages—each contributing to supply disruptions that ripple through Ethiopia's economy.

The rail alternative represents a significant infrastructure shift. By integrating direct train-loading capacity at Doraleh, the terminal would enable higher-volume, faster fuel movement while preserving truck routes for regions beyond railway reach. The project's expansion potential from 288,000 to 750,000 cubic meters of storage suggests confidence in growing demand.